Advanced Micro Devices (AMD) closed at $52.93 in the latest trading session, marking a -0.88% move from the prior day. This change was narrower than the S&P 500's 1.08% loss on the day. Elsewhere, the Dow lost 1.51%, while the tech-heavy Nasdaq lost 0.86%.
Prior to today's trading, shares of the chipmaker had gained 0.81% over the past month. This has lagged the Computer and Technology sector's gain of 5.89% and outpaced the S&P 500's loss of 0.3% in that time.
Wall Street will be looking for positivity from AMD as it approaches its next earnings report date. The company is expected to report EPS of $0.16, up 100% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.85 billion, up 21% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.01 per share and revenue of $8.39 billion, which would represent changes of +57.81% and +24.63%, respectively, from the prior year.
Any recent changes to analyst estimates for AMD should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AMD is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that AMD has a Forward P/E ratio of 52.78 right now. This represents a premium compared to its industry's average Forward P/E of 20.26.
Investors should also note that AMD has a PEG ratio of 1.31 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Electronics - Semiconductors was holding an average PEG ratio of 1.79 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
To read this article on Zacks.com click here.